UK-Focused Private Equity Fundraising

by Laura Duce

  • 13 Feb 2012
  • PE

Preqin’s Funds in Market product shows that there are currently 91 private equity funds seeking capital commitments with a geographical focus that includes the UK. Forty four of these vehicles focus exclusively on the country, and 38 of these 44 funds are managed by firms based in the UK. Collectively, these 44 funds are targeting an aggregate £6.7bn in investor capital, and to date 19 vehicles have already held at least one interim close raising a total of almost £1.1bn in capital commitments.

Twenty four of these funds focused exclusively on the UK invest solely in the property industry sector, making property the most popular industry focus. These real estate funds are also targeting the largest amount of investor capital, with a collective target size of almost £3.9bn. Although a much smaller target in comparison, infrastructure has the second largest collective target size with six funds targeting £864mn, and four growth vehicles have a collective target of £691mn.

The average target size of funds focused entirely on the UK is £152mn, and the largest fund target size is £500mn. The largest three funds currently in market are Barclays Senior Debt Infrastructure Fund, Merchant Asset Partners, and Threadneedle Low-Carbon Workplace Trust, which are targeting £500mn, £500mn, and £350mn respectively. All three funds have fund managers based in London, and the first two funds are yet to make an interim close. The Threadneedle Low-Carbon Workplace Trust has raised £80mn through a second close, targeting environmentally responsible property throughout the UK.

Over the past 12 months, 30 funds focused on the UK have held a final close, of which 11 focus exclusively on the country. These 11 funds collected aggregate commitments of £1.9bn, and UK Property Income Fund held the largest final close, at £298mn.

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